Saturday, 7 February 2015

7 steps to financial freedom

This morning, I had a whatsapps conversation with E. She is one of those agents who believe in property price is forever increasing and each property is a savings plans. 

Well, we agree to disagree. I told her about my cashflow philosophy and to get her expenses in control and replace her expenses with passive income from business, property or other sources. Free up her salary for investment. Trading up is not a way to go, it merely increases the liability forever. 

As always, I shared my favourite OCBC 360 accounts with 3.05% and she was surprised she did not know about this account. I also disagree about putting her money into different accounts, eg savings in her children's account. I told her the prudent way is to consolidate to get better income as a bigger client for the bank is a better way of getting higher returns.

We discuss HDB as well. HDB loan is one of the biggest stumbling blocks today. It requires you to empty the CPF account to pay for the downpayment. Which leaves the average Joe dependent on each month's salary to meet the mortgage service requirement without a massive base to depend on in case of emergency. This, I feel is very sad. I took a bank loan to preserve my base so that I could quit at anytime of my life and I have a sizable base for monthly installment. This is prudence.

Lets recap and work out a system :

1.  Go through your expenses and work out the fixed income and decrease the variable income.
2.  Protection, get yourself protected with term insurance.
3.  Work on your credit ratings and leverage power.
4.  Invest in network of agents, bankers, investors and attend free workshops.
5.  Tap on their expertise.
6.  Invest in cashflow income stream.
7.  Create multiple income stream.

When passive income > expenses, work on capital growth investments. 

As always, build a solid base, only then can you use that base to leap high and far!

Why are there no or so few property investment blogs compared to shares investment blog?

Dear Readers, as a avid follower of the principal of cashflow principals, I've found there are little or no blogs on the steps towards financial success in property investment. Yet, there are tonnes of people writing about shares and shares investment and its exciting every day with share prices going up and down. If you are a follower of the cashflow principal, perhaps, shares is not a market you go into?

Lets say, if property blogs are written as share investment style, what would it be like?

It would probably be monotonous and without any excitement... 1 year of writing later and the market stays stagnant. Cashflow ~ same for the next few years, so whats so exciting about property investment vs shares?

Well, as far as I know, property investors are actively in the market researching, negotiating and raising funds and they have no time for market update by earnings, price changes etc. Price change, they take it in their stride. When Sqft research started analysing property by technical indicators, I got a good laugh. Yes it is possible to do so, and it gives a good base for the beginner investor, but really is every property same as another?

Do you have any good property investment blog to recommend?

Tuesday, 3 February 2015

11 Central Avenue Moorabin

This development by Stellar reminded me of Toa Payoh and the quaint little city in Delft. Its a nice city centre location near the train station. This photo below actually shows the location, it has nice shops along the strip and its quiet and near amenities.

Lets see the location. 

11 Central Avenue is about 200 m from the train station. 

What about population growth in the suburb and others? Lets say this is micro-analysis and the location is nice and next to transport, it should be easily rentable. The apartments are all 2 BR and 3 BR starting from AUD 440K for 2B 1B and 1Carpark with good layout.